The March 2011 Round 4 U.S. Payroll Tax Update has released.
-When you create your Electronic W2 filing and you have a combination of Hire Act employees and multiple companies you will need to create the Electronic W2 File separately for each company. If you create one file including all companies the Hire Act employees will not include the RO record indicating that they are a Hire Act Employee for subsequent companies. Resolved in Round 4 code Tax Update.
– The FICA/Social Security withholding changed for employees from 6.2% to 4.2% in 2011. Round 1 included the change to both the Employee and Employer portion due to Microsoft Dynamics GP calculation being based from one amount. Due to this, General Ledger posting, inquiries and reports that show FICA amounts for employers will be calculated using 4.2% for payruns that are processed with Round 1. Round 2 Tax Update includes changes to the employer portion to bring back to 6.2%. We understand the challenges you face with this: however, it was important to release with accurate employee paychecks starting January 1, 2011.
– Check Register Report – If you are finding that your Employer FICA Owed and Total Tax Liability are not correct on your Check Register reports verify that you are on Microsoft Dynamics GP Version 10.00.1701. If you are running on this version next step is to verify if you have modified the Check Register Report. If you are printing a modified Check Register you will need to either print the original canned report or delete the Modified Check Register and make your changes again.